Pennsylvania Debt Collection Laws: Your Complete Guide for 2024

Pennsylvania protects you with two powerful state debt collection laws. The Fair Credit Extension Uniformity Act (FCEUA) defines what collectors cannot do. The Unfair Trade Practices and Consumer Protection Law (UTPCPL) lets you fight back.

You also get federal protections under the Fair Debt Collection Practices Act (FDCPA).

In Pennsylvania, collectors have four years to sue you for most debts. After that, the debt becomes time-barred.

Pennsylvania’s Two State Debt Collection Laws

Pennsylvania goes beyond federal law to protect you from aggressive collectors. The state enforces two key laws that work together.

Pennsylvania Fair Credit Extension Uniformity Act (FCEUA)

The FCEUA defines unfair and deceptive debt collection practices. Unlike federal law, it applies to both third-party collectors and original creditors.

The law covers most consumer debts. Home equity loans fall under FCEUA protections. Purchase-money mortgages on real estate do not.

Federal and Pennsylvania state tax debts are exempt. But the law covers all other taxes, interest, and penalties.

You cannot sue directly under the FCEUA. Pennsylvania courts allow you to use the UTPCPL instead.

Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL)

The UTPCPL gives you the right to sue collectors who violate the FCEUA. You can file in Pennsylvania state court.

You must prove an “ascertainable loss of money or property.” You need concrete damages. Unlawful fees or interest charges qualify as measurable losses.

Win your case and the judge can award triple damages. You also get attorney fees and court costs covered.

Federal Fair Debt Collection Practices Act (FDCPA)

The FDCPA protects every Pennsylvania resident from harassment. The law applies nationwide and targets third-party debt collectors.

Debt collectors must follow strict rules under the FDCPA:

• Send written validation notice within five days of first contact
• Stop contacting you if you request it in writing
• Verify the debt if you dispute it within 30 days
• Provide accurate information about the amount you owe

Collectors cannot harass you. They cannot call before 8 AM or after 9 PM. They cannot contact you at work if your employer prohibits it.

The law bans threats, false statements, and unfair practices. Collectors cannot pretend to be attorneys or government officials. They cannot threaten arrest or lawsuits they do not intend to file.

Pennsylvania Offers Stronger Protections Than Federal Law

Most states rely solely on the FDCPA. Pennsylvania gives you more.

The FCEUA extends FDCPA protections to original creditors. Federal law only covers third-party collectors. Pennsylvania law covers both.

You get more time to take legal action in Pennsylvania. State law gives you two years to sue after a violation. Federal law only allows one year.

If you experience debt collection abuse, speak with a bankruptcy attorney for free to understand your options.

Fighting Back Against Illegal Debt Collection

You have multiple options when collectors break the law. Document every interaction. Save letters, emails, and voicemails.

File a Complaint With the Attorney General

Report violations to the Pennsylvania Attorney General’s office. They investigate complaints and take enforcement action.

Submit your complaint online through the official portal. Include dates, times, and specific details of violations.

Sue in State or Federal Court

You can sue collectors who violate Pennsylvania or federal law. File in state court for FCEUA violations through the UTPCPL. File in federal court for FDCPA violations.

Proving an FDCPA violation automatically proves FCEUA and UTPCPL violations. You do not need separate evidence for each law.

You cannot collect damages under both state and federal law for the same violation. Choose which law to pursue based on your situation.

Statute of Limitations for Pennsylvania Debt

Pennsylvania law limits how long collectors can sue you. The statute of limitations is four years for most debts.

The four-year clock applies to:

• Written contracts
• Installment contracts
• Medical bills
• Credit card debt
• Oral contracts
• Implied contracts
• Secured debts

First mortgages on property have no time limit. State and federal tax debts never expire.

The four-year period typically starts from your last payment date. Making a payment restarts the clock completely.

Be careful if collectors contact you about old debts. A single payment or promise to pay resets the statute of limitations. You give collectors four more years to sue you.

After four years pass, the debt becomes time-barred. Collectors cannot sue you successfully. They can still ask for payment, but you have a complete defense in court.

What Collectors Can Legally Do in Pennsylvania

Understanding collector rights helps you recognize when they cross the line. Collectors start with calls and letters. They escalate if you ignore them.

Wage Garnishment Requires a Court Order

Collectors must sue you and win before garnishing wages. They need a judgment from a Pennsylvania court.

The judgment allows the collector to request a wage garnishment order. Pennsylvania law limits how much collectors can take from each paycheck.

Getting sued does not mean you automatically lose. You can fight back. Speak with a bankruptcy attorney for free to explore your defense options.

Car Repossession Without Notice

Auto lenders can repossess your vehicle without warning. They do not need a court order. They do not need to notify you first.

Pennsylvania law allows repossession after you default on your loan. Default can happen after just one missed payment. Check your auto loan contract for specific terms.

Repossession agents cannot breach the peace. They cannot break into locked garages. They cannot use physical force or threats.

Pennsylvania Debt Relief Options

Overwhelming debt requires action. You have several paths forward.

Start With Free Credit Counseling

Nonprofit credit counselors provide personalized guidance. They review your finances and suggest solutions.

Credit counselors might recommend debt management plans. They may suggest debt consolidation. Some situations call for bankruptcy protection.

Bankruptcy Provides a Fresh Financial Start

Bankruptcy stops all collection activity immediately. Wage garnishments end. Harassing phone calls stop. Lawsuits freeze.

Chapter 7 bankruptcy eliminates most unsecured debts in four months. Credit card balances disappear. Medical bills vanish. Personal loans get discharged.

Chapter 13 bankruptcy creates a three-to-five-year payment plan. You keep your property while catching up on secured debts. Remaining unsecured debts get discharged after completing the plan.

Pennsylvania residents can speak with a bankruptcy attorney for free to determine which chapter fits their situation.

Free Legal Resources in Pennsylvania

Multiple organizations provide free or low-cost legal help to Pennsylvania residents:

• Pennsylvania Legal Aid Network: Online hub connecting you to legal aid programs statewide
• PALawHelp.org: Self-help guides and resources for common legal issues
• Community Legal Services of Philadelphia: Serves Philadelphia and nearby areas
• Philadelphia Legal Assistance: Debt collection help for Philadelphia residents
• Legal Aid of Southeastern Pennsylvania: Covers Bucks, Montgomery, Chester, and Delaware counties
• MidPenn Legal Services: Serves central Pennsylvania residents
• Neighborhood Legal Services Association: Pittsburgh-area legal aid
• North Penn Legal Services: Northern Pennsylvania coverage
• Northwestern Legal Services: Serves Cameron, Crawford, Elk, Erie, Forest, Mercer, McKean, Potter, Venango, and Warren counties

Income qualifications apply for most programs. Contact organizations directly to check eligibility.